Strong Q3 Propels Hedge Funds To Record $2.2 Trillion

By Teresa Rivas

Hedge fund industry assets reached a new record size, totaling more than $2.2 trillion.

That’s according to data from Hedge Fund Research, out today. Hedge funds have expanded to their largest size ever thanks to a strong third-quarter, which helped to overcome tepid demand for the products among investors. Assets grew by $80 billion in the three-month period ending in September, but the lion’s share of asset growth ($70 billion) came from better performance, which dwarfed new investment, which stood at $10.6 billion.

The $2.2 trillion in total assets is up from $2 trillion at the end of last year, and more than double the assets invested for wealthy clients in 2005.

As Reutersreports, this year has only seen $31 billion in net new capital flow into hedge funds from wealthy clients, pension funds and endowments. That compares to $70.6 billion in 2011, when funds mostly lost money, and $194.5 billion in 2007, before the financial crisis.

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